New Trader/New Service

Patrice V. Johnson's J.E.D.I. Trader service trades stocks, options and options
on futures. Read on to find out more.

Welcome to the biweekly stock barometer. This article comes out every 2
weeks and gives our big picture view of the market. If you're interested
in following our signals and learning more about our system, then I
invite you to click here and subscribe to the daily service - since
the market can turn on a dime and so too can our interpretation as the market
gives its daily clues to the future. Or sign up for our free
weekly newsletter, where we provide up to date articles from our
various trading services.

We also offer a free weekly indicator chart if you visit our home page
and scroll to the bottom. This chart will be updated each week, so be sure
to check back frequently for updates. www.stockbarometer.com -
don't forget to scroll to the bottom.

Click here to
visit Patrice V. Johnson's J.E.D.I. Way Newsletter to learn more and try a
free trial.

On to this week's charts.

Message From The Markets

Market action is ruled by sentiment and by monitoring market internals
and studying sentiment you can reasonably predict future market movements.
The basis of the Stock Barometer system is overlaying extremes in sentiment
with sound technical analysis to predict the likelihood of future price movement.
Each indicator and chart measures the hope, fear and greed of investors and
traders from different angles. Follow along with my charts and over time,
you'll also learn to understand how to read the markets, which is essential
prior to setting up each and every trade.

STOCK BAROMETER CHART

The Daily Stock Barometer is a proprietary measure of market energy. The
direction of the stock barometer determines our short-term outlook on the
market's direction. A BUY or SELL signal is triggered when the indicator
clearly changes direction. If the line is moving up, we are in BUY MODE
and if it's moving down, we are in SELL MODE. The black line is a 5-day moving
average that we use to confirm changes in direction. We may wait for the
QQQQs to break support or resistance before changing mode.

EQUITY PUT CALL RATIO CHART

The CBOE put/call ratio is comprised of two sets of data; equity options
and index options. The index component contains items that are used as a
hedge, thereby distorting the correlation and interpretation of the indicator.
I use the equity put/call ratio. This is one of the most accurate read of
investor's fear and complacency.

TRIN/ARMS CHART

Richard Arms developed the arms index. It is also referred to the Trading
Index or TRIN for short. It is a measure of the ratio of up stocks and down
stocks divided by the ratio of up volume and down volume. Our Spread Chart
converts the arms index data into momentum Buy and Sell Signals.

TICK CHART

The tick index is represents the sum of all stocks ticking higher minus
all stocks ticking lower (a stock is said to be trading on an up tick when
it trades at a higher price than the last sale). It's utilized as a day trading
tool as it gives you an up to the second read of the intensity of buying
and selling.

BREADTH (ADVANCE - DECLINE) CHART

Each day several thousand stocks either advance, decline or remain unchanged.
The number of advances and declines normally ranges from +2500 to -2500.
A high number of advancing stocks normally marks a top just as a high number
of declining stocks normally marks a bottom. Monitoring the 5 and 13-day
moving averages of this allows us to better predict future prices.

VXO CHART

The VIX is a measure of volatility on options pricing. We use the old VIX,
which is now called the VXO. The higher the volatility, the more likely the
market is close to a bottom, as traders are willing to pay more premium for
puts, which act as Insurance on their long positions.

Cycle Time

Monday will be day 3 in our UP cycle.

The Stock Barometer signals tend to follow a 5, 8 and 13 and sometimes
21 day Fibonacci cycle that balance with 'normal' market cycles. Knowing
where you are in the current market cycle is important in deciding how long
you expect to maintain a position.

Friday the Qs retested the lows and bounced. This bounce back into the trading
range suggests that the market would move back up and test higher levels. A
reversal and rally here would initiate a surge into 4/5.

My timing work is based on numerous cycles and has resulted in the above
potential reversal dates. They're predictive and have nothing to do with
the barometer cycle times. However, due to their accuracy in the past, I
post the dates here.

QQQQ or SPY Chart: A chart is provided in every bi-weekly report and shows
the barometer Buy and Sell Signals (which are provided in my morning updates)
as well as showing the next highlighted 'reversal' window. The numbers adjacent
to the buy and sell signals are the number of days between signal (cycle
time).

Here's one years of our end-of-day buy and sell signals for the Stock
Barometer over the past year. They're marked on the QQQQ chart with red and
blue lines (or red and blue arrows). Note we recently changed bottom and
top to read buy and sell.

•

04/5

Projected SELL Signal (20 days from last signal)

•

03/05

BUY (3 days)

•

02/29

SELL (13 days)

•

02/11

BUY (8 days)

•

02/05

SELL (4 days)

•

01/24

BUY (4 days)

•

01/17

CASH (3 days)

•

01/14

BUY (6 days)

•

01/04

SELL (9 days)

•

12/20

BUY (3 days)

•

12/17

SELL (23 days)

•

11/13

BUY (4 days)

•

11/07

SELL (7 days )

•

10/29

BUY (13 days)

•

10/10

SELL (3 days)

•

10/5

BUY (2 days)

•

10/3

SELL (2 days)

•

10/1

BUY (1 days)

•

9/28

SELL (12 days)

•

9/12

BUY (4 days)

•

9/06

SELL (3 days)

•

8/31

BUY (3 days)

•

8/29

SELL (7 days)

•

8/17

BUY (3 days)

•

8/14

SELL (4 days)

•

8/8

BUY (16 days)

•

7/17

SELL (3 days)

•

7/12

BUY (15 days)

•

6/20

SELL (4 days)

•

6/14

BUY (20 days)

•

5/15

SELL (27 days)

•

4/5

BUY (7 days)

•

3/27

SELL (13 Days)

•

(historical reversal dates and performance figures
are published at the Performance Page on the home page and updated
at least annually)

The following work is based on my spread/momentum indicators for
the QQQQ, GLD, USD, USO and TLT. They are tuned to deliver signals in line
with the Stock Barometer and we use them only in determining our overall
outlook for the market and for pinpointing market reversals. The level,
direction, and position to the zero line are keys in these indicators. For
example, direction determines mode and a buy signal 'above zero' is more
bullish than a buy signal 'below zero'.

Gold Spread Indicator (AMEX:GLD)

To trade Gold, utilize the Gold ETF AMEX:GLD. This gives us a general gage
to the overall health of the US Economy and the markets, as well as to assists
us in the entry of positions in our stock trading service.

US Dollar Index Spread Indicator (INDEX:DXY)

To trade the US Dollar, I'd utilize the Power Shares AMEX:UUP: US Dollar
Index Bullish Fund and AMEX:UDN: US Dollar Index Bearish Fund.

Bonds Spread Indicator (AMEX:TLT)

To trade Bonds, I recommend Lehman's 20 year ETF AMEX:TLT. Note that
the direction of bonds can have an impact on the stock market. Normally,
as bonds go down, stocks will go up and as bonds go up, stocks will go down.

OIL Spread Indicator (AMEX:USO)

To trade OIL, utilize AMEX:USO, the OIL ETF. We look at the price of oil
as its level and direction can have an impact on the stock market.

Summary & Outlook

The barometer remains in Buy SUPPORT Mode. We expect the markets to follow
up on Friday's holding of support and move higher into 4/5. Here's what it
looks like on a chart of the Q's.

I hope you enjoyed the biweekly stock barometer. This article comes out
every 2 weeks and gives our big picture view of the market. If you're interested
in following our signals and learning more about our system, then I
invite you to click here and subscribe to the daily service - since
the market can turn on a dime and so too can our interpretation as the market
gives its daily clues to the future. Or sign up for our free
weekly newsletter, where we provide up to date articles from our
various trading services.

We also offer a free weekly indicator chart if you visit our home page
and scroll to the bottom. This chart will be updated each week, so be sure
to check back frequently for updates. www.stockbarometer.com -
don't forget to scroll to the bottom.

Stock Barometer is completely independent. We have never and will
not ever accept compensation from any company whose stock we recommend.

Our goal is to make you money. We offer you the tools and information to
do so and leave it to you, the individual investor, to apply them in the best
way possible.

Important Disclosure: Futures, Options, Mutual Fund, ETF and Equity
trading have large potential rewards, but also large potential risk. You must
be aware of the risks and be willing to accept them in order to invest in these
markets. Don't trade with money you can't afford to lose. This is neither a
solicitation nor an offer to buy/sell Futures, Options, Mutual Funds or Equities.
No representation is being made that any account will or is likely to achieve
profits or losses similar to those discussed on this Web site. The past performance
of any trading system or methodology is not necessarily indicative of future
results.

Performance results are hypothetical. Hypothetical or simulated performance
results have certain inherent limitations. Unlike an actual performance record,
simulated results do not represent actual trading. Also, since the trades have
not actually been executed, the results may have under- or over-compensated
for the impact, if any, of certain market factors, such as a lack of liquidity.
Simulated trading programs in general are also subject to the fact that they
are designed with the benefit of hindsight. No representation is being made
that any account will or is likely to achieve profits or losses similar to
those shown.

Investment Research Group and all individuals affiliated with Investment Research
Group assume no responsibilities for your trading and investment results.

Investment Research Group (IRG), as a publisher of a financial newsletter
of general and regular circulation, cannot tender individual investment advice.
Only a registered broker or investment adviser may advise you individually
on the suitability and performance of your portfolio or specific investments.

In making any investment decision, you will rely solely on your own review
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performance of our recommendations is not an indication of future performance.
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reliance by you on the contents of our Web site, any promotion, published material,
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For a complete understanding of the risks associated with trading, see our Risk
Disclosure.